Business
Placing and Proposed Open Offer
Placing and Proposed Open Offer.
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[{"type":"text","content":"\n \nRNS Number : 2140K Elektron Technology PLC 23 June 2014 \n \n\nNot for release, publication or distribution in whole or in part, in or into the United States, Canada, Australia, Japan, NEW ZEALAND, RUSSIA, SOUTH AFRICA or any other jurisdiction where to do so would be unlawful\n \nElektron Technology plc\n(\"Elektron\" or the \"Company\" or the \"Group\")\n \nPlacing to raise £2.34 million\nand\nProposed Open Offer to raise up to £1.16 million\n \nFurther to the announcement at 7am on 20 June 2014, Elektron Technology plc (AIM: EKT), the global technology group, is pleased to announce that it has raised £2.34 million (before expenses) through a placing with existing investors of 46.8 million new ordinary shares of 5 pence each (the \"Placing Shares\") at a price of 5 pence per Placing Share (the \"Placing Price\") (together the \"Placing\").\n \nThe Company also intends to raise up to a further £1.16 million (before expenses) by way of an open offer of up to 23.2 million new ordinary shares of 5 pence each (the \"Open Offer Shares\") to existing shareholders on the register on 20 June 2014 (ex-date 23 June 2014) at the Placing Price (the \"Open Offer\" and, together with the Placing, the \"Capital Raising\").\n \nThe Company intends to use the net proceeds of the Capital Raising to reduce its borrowings with the bank, to fund working capital requirements and to invest in new product development and marketing.\n \nA circular to shareholders containing full details of how shareholders can participate in the Open Offer, together with an application form, will be posted to shareholders in due course. The circular will also be posted on the Company's website.\n \nCommenting on the Placing, John Wilson, Chief Executive, commented:\n\"We are delighted to have raised funds which will enable management to continue to focus on the transformation of the business. The proceeds are expected to give the Company additional flexibility to improve the performance of our current brands as well as help fund the roll out of new products. The Board remains confident that our strong brand portfolio and our continued investment in new product programmes will place the Group in a good position for growth.\"\n \nBackground\nAs part of the previous Strategic Alternatives Process, the Board received vario...